Hong Kong property prices expected to slide further as fears of protests remain despite pan-democrats’ thumping election win

Property owners continue to reduce prices to fund their emigration plans

A survey conducted by University of Hong Kong shows more than half of the respondents expect property prices to fall further

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A 792 square feet flat at City Garden in North Point sold for HK$12.28 million last week, 5.5 per cent lower than the banks’ valuation of about HK$13 million. Photo: May Tse

Published: 8:03am, 27 Nov 2019Updated: 8:29am, 27 Nov 2019

Market observers are cautious on the property market outlook despite a rousing win for pan-democrats and a surge in developers’ share prices, as they fear there could be more anti-government protests ahead, while the number of people selling flats in Hong Kong to acquire foreign citizenship continues to rise.

“I think the protests will actually continue. The lack of protests was because people wanted the election to go smoothly,” said Raymond Cheng, head of Hong Kong and China research at CGS-CIMB Securities. “But people are waiting to see how the government responds to the five demands. If the government does not have a meaningful response, the protests will start again.”

He said he was not optimistic that the election results could help in the recovery of the property market.

The five core demands of the protesters include full amnesty for arrested demonstrators and the setting up of an independent inquiry into alleged police brutality.

Officials open a ballot box at a polling station in Kowloon Tong, Hong Kong, on November 24, 2019. Photo: Reuters

Cheng’s sentiment is shared by other analysts.

“About 20 per cent of owners in my area have [slashed prices by] 10 to 20 per cent, and about 10 to 15 per cent” have offered to sell their homes because they want to emigrate, said Gary Lam, district sales director for North Point at Centaline Property Agency.